In parcel shipping, a single “forever” carrier isn’t a safety net; it’s a bottleneck. In extreme situations, it’s a liability. Volumes rise, surcharges shift, and customer promises don’t budge.
Market shifts; customer shifts. How can you not?
The durable play is policy, not panic: a rules-driven, multi-carrier parcel strategy that protects both cost and delivery commitments, especially when conditions change hour to hour.
With peak volume set to hit 2.3B parcels (+5% YoY) this holiday, the only durable way to protect cost and promise dates is by curating a bench that flexes when the network doesn’t – or can’t.
The Case for a Flexible Parcel Strategy
Parcel networks are living systems: capacity swings, lane performance drifts, and GRIs compound quietly until margin disappears. If your plan assumes one carrier can be all things, you’ll overpay when rates rise and underperform when service wobbles.
A flexible, multi-carrier position gives you options before you need them:
Multi-carrier optionality balances cost, speed, and promise by region, weight, and cutoff—keeping LTL as a rare exception (DIM/oversize only).
Speed is a loyalty lever; optionality helps you hit two-day expectations across zones without throwing money at air.
The point isn’t to add carriers for sport—it’s to insulate your promises from volatility. A flexible bench buys you time and control, so your team can respond with policy, not panic.
Designing Your Parcel Bench (North America Focus)
You don’t need to rebuild your stack to get multi-carrier right. Start with the lanes you already run, the promises you already make, and the exceptions that trip you up. Then add targeted coverage where it moves the needle most.
GLS notes that shipments that take 3–4 days with national carriers will often be delivered in 1–2 days with GLS, depending on the shipping location. GLS broadly serves the western US, enabling broader 1–2-day reach from West Coast origins.
Take a methodical approach to reviewing, then adjusting, your strategy:
Portfolio review. Map lanes by zone/weight and flag single points of failure. Add regional/specialist last-mile where they’re strongest.
Promises to tiers. Define Economy (3–5d), Standard (2–3d), Expedited (1–2d), and Returns. Reserve LTL for true oversize/exception paths.
Automated rate-shopping + policy routing. “Route to lowest landed cost that meets the promise,” with guardrails for performance, DIM risk, and cutoffs.
Pilot → measure → repeat. Treat carriers as interchangeable modules. Keep what hits thresholds; pause what doesn’t.
This is less a tech project and more an operating rhythm. Continuous improvement should not be downplayed here. Set and forget got you here; don’t be lulled into doing it again. A clear tier map and a few enforceable rules turn your carrier list into a real bench—one that gets better every week.
Make the Bench Tangible: Roles × Tiers
Teams move faster when they can “see” the plan. A simple roles-by-tier matrix removes guesswork at the station and makes policy decisions obvious in the WMS/OMS.
Service Tier
Primary Role
Backup/Failover
When to Prefer
Example Rule
Economy (3–5d)
Regional(s)
National Ground
Dense regional coverage, lightweight parcels
“Zone ≤4 & DIM <10 lb → Regional A”
Standard (2–3d)
National Ground
Regional(s)
Broad coverage, stable SLAs
“If Regional 2-day hit <95% (14d) → National B”
Expedited (1–2d)
Express/Air
Alt Premium
Promise-critical, late cutoffs
“If promise <48h → Express C”
Oversize/Exceptions
Specialty Parcel
LTL (rare)
DIM/oversize only
“If DIM>139 or >50 lb → Specialty D”
Regional / Specialist Examples
CDL: Reaches over 50 million consumers across the Northeast-to-Mid-Atlantic and provides overnight delivery in NY, NJ, CT, PA, DE, DC, MD, VA—often with lower pricing than national carriers.
UniUni: Cross-border U.S. / Canada + last-mile; useful for cost-competitive light parcels headed to CA with tighter control over handoffs.
When the matrix is visible and rules are explicit, planners stop debating hypotheticals. The system routes the routine; humans focus on exceptions that actually need judgment.
From Bottleneck to Balanced SLAs (Why it Pays Off)
Optionality only matters if it shows up in your numbers – ideally, in your company’s bank account. These four KPIs translate strategy into outcomes you can hold the network—and yourselves—accountable to.
Blended Cost Per Parcel (BCPP). Watch total parcel spend divided by parcels shipped, weekly. If it rises ≥5% week-over-week without a clear mix shift, expand regional share where SLAs allow and re-shop DIM-sensitive SKUs. This is your margin early-warning system; it tells you when policy needs to step in before finance does.
Promise Hit Rate (By Zone & Method). Track the percentage of orders that meet their promised date, segmented by zone/tier. Hold Zones 2–4 at ≥95%; if a carrier misses the threshold for two consecutive weeks, auto-failover per policy. Promised Hit Rate is your brand in a number; protect it with guardrails you rigorously enforce.
Failover Success Rate. Of orders that triggered a policy failover, what percentage still arrived on time and on budget? Target ≥97%; if it dips, retune backups, cutoffs, or packing times. Failover only counts if it saves the promise, not just the shipment.
DIM/Surcharge Rate. Monitor the share of parcels incurring DIM/accessorials and the $/parcel impact. Trigger “DIM defense” to re-shop methods when projected surcharges exceed your threshold. Surcharges are where quiet leakage lives; making them visible makes them manageable.
Finally, 86% of consumers define “fast delivery” as two days or less, and 63% will switch retailers if they can’t get it. Redundant carriers help you hit those promises. Ensure that all the hard policy work reaches the customer’s front and center attention. Often, your fulfillment execution is just as powerful for capturing and retaining customers as the product or service you are delivering.
World-Class Execution Calls For Strong Technology Partners
Good policy needs good plumbing.
eHub centralizes carrier connections and live quotes. They give you access to options that you didn’t consider and manage those connections, eliminating technical lift while defending your margins.
Deposco executes your new rules with order, promise, and inventory context—so routing stays accurate at ship time and auditable at close. Dynamic rate shopping and systemic support ensure predictable execution. Every package optimized, every time.
Clear rules and a supply chain execution system that can follow them turn your strategy into muscle memory: repeatable, observable, and easy to iterate and improve.
Parcel Optionality = Resilience
When a national carrier surges, a lane slips, or demand spikes north of the border, single-threaded networks stall. A multi-carrier bench stays on-promise and on-budget by design. You don’t have the time to reconfigure your network every shock, you need the confidence that your response flexes automatically.
The U.S. parcel market is projected to grow 36% by 2030, so the ability to scale across multiple carriers isn’t optional—it’s how you keep pace.
You’re not guessing. You’re executing.
With eHub curating your carrier bench and Deposco enforcing optimal fulfillment locations and modes, your playbook truly is policy, not panic.
If online retailers have sold products to anyone in the European Union (EU) as of July 1, 2021, they’re most likely aware that taxation changes have been made. Non-EU retailers have been given new options for VAT payment in the EU. Online retailers, as well as consumers, will need to know what these changes and new rules are, why these changes have been implemented, and the options for businesses to incorporate them.
What has changed with EU import VAT?
The EU eliminated its €22 tax de minimis, implemented new value-added tax (VAT) regulations, and encouraged online retailers to adjust their methods of importing goods into the EU.
Before July 1, anyone importing goods into the EU valued under €22 was not charged VAT. Now (post-July 1, 2021), all low-value imports (where the total value of goods is less than or equal to €150) are charged a VAT fee applied to the COGS value (cost of goods sold).
Why the change?
There are several reasons why the EU decided to remove the €22 de minimis and distance selling threshold that previously voided the VAT fees for orders under the threshold, including the following:
1. VAT fraud A massive amount of VAT fraud has been occurring in the EU, averaging around €7B in VAT fraud each year. The new rules aim to make shipments more secure and eliminate processes that allow fraud to occur quickly.
2. Level the playing field The EU incorporated the VAT scheme in an attempt to level the playing field between domestic and foreign retailers. Online EU retailers previously paid VAT on all orders, regardless of the value of the delivered goods, while retailers from countries outside of the EU could slide under the de minimis, allowing them to offer more competitive pricing. As of July 1, 2021, non-EU retailers must also pay VAT fees on all of their shipments into the EU, helping EU retailers stay competitive.
it’s extremely important to consider what kind of experience retailers want their customers to have
Non-EU online retailers also have the cost of international shipping and the task of finding and paying for an intermediary/fiscal representation. EU retailers do not need an intermediary, and their domestic shipping costs are significantly less expensive than international shipping costs. While the EU initially intended to level the playing field for domestic EU sellers, the changes have given them quite the advantage over non-EU retailers.
An intermediary is a European tax representative, usually an international accounting firm, who acts as an in-country agent for online retailers selling into the EU. After retailers acquire an IOSS number, the monthly remittance of VAT for all EU sales will need to be paid to their intermediary, who will then go on to pay it on the seller’s behalf to the country that they’ve selected for representation.
3. Tax revenue A more obvious benefit, but a benefit nonetheless, is that the EU’s removal of the de minimis causes an increased tax revenue.
4. Simplify The new VAT scheme is intended to simplify the VAT collection process. IOSS offers a new optional method of VAT collection by pre-collecting the EU import VAT.
Were online retailers and consumers ready?
Despite months of news coverage, many retailers were not prepared for the VAT scheme when it launched and have had difficulty incorporating the new scheme. Some local governments were unprepared to enforce the new rules, and communication has been less than ideal. The EU, retailers, and customers are still experiencing somewhat of a transitional period; however, implementation is getting better. Despite the difficulties of these changes, businesses should never try to cheat the system, engage in illegal shipping conduct, or fail to comply with the new VAT scheme because it will result in penalties.
What does the new EU VAT scheme mean for online retailers and consumers?
With the new VAT scheme, online retailers must decide how they want their EU consumers to receive their packages. While there are several different options to handle VAT collection, this article focuses on IOSS.
IOSS service
The Import-One-Stop-Shop (IOSS) service allows retailers to register in one European country (their choice) and report all European sales in a single VAT return to that country. For example, if a seller registers for an IOSS number in Ireland, they will report and remit taxes for all EU sales there. Ireland would distribute the VAT collected to the countries where the sales occurred.
This simplifies the registration and remittance process because retailers don’t have to register in multiple countries as they did previously with the distance selling thresholds. However, it does require non-EU businesses to appoint and pay for an in-country representative who will go on to disperse their collected VAT and take on liability if the non-EU businesses don’t pay.
When using an IOSS registration number on import documents, retailers must select DTU/DAP to ensure they will not be charged carrier disbursement or advancement fees on their shipments into the EU. Bypassing these fees can save sellers up to $16 (USD) per shipment, which adds up.
It’s also important to note that once sellers register for IOSS, they must stick with it. Sellers cannot pick and choose which orders to collect VAT on and ship with their IOSS number…it’s all or none. All low-value orders imported into the EU must include the online retailer’s IOSS number. However, if sellers decide they need to withdraw from using IOSS, it is possible to deregister, but they will have to cancel their VAT registration. They must also be on good terms with the country of VAT registration (current on VAT payments).
IOSS is only applicable for B2C (business to consumer) shipments where the value of the products is equal to or under €150. Retailers considering IOSS should evaluate how many shipments fall under the threshold. Many carriers have gone on record stating that they support the IOSS program since the VAT will be prepaid, and the online retailer will avoid paying the carrier’s advancements or third-party collection fees. Other carriers have said they will only work with IOSS-registered merchants.
IOSS can potentially have a quicker transit time than DDU (delivered duty unpaid) packages. IOSS also has the capacity to provide the best customer experience. The presence of an IOSS number on a package helps increase the potentiality for a more efficient customs clearance process because it lets customs know that VAT will be remitted later to HMRC (Her Majesty’s Revenue and Customs), which allows the package to move directly out for delivery once it has been cleared.
The IOSS number is required on every shipment. Displaying and collecting VAT at checkout [along with the other fees that make up a landed cost] also provides price transparency, letting customers know the entire landed cost at the time of purchase with no surprise fees upon delivery. This allows for a good customer experience, resulting in great reviews, fewer returns or abandoned packages, and possible repeat customers.
Other options
The additional options to manage VAT collection are as follows:
Special Arrangement – DDU (delivered duty unpaid) carrier collects VAT from customer (⚠️ not recommended)
Send DDP – (delivery duty paid) landed cost calculated and collected at checkout and paid to the carrier (no IOSS number)
Note that it’s extremely important to consider what kind of experience retailers want their customers to have—displaying and collecting VAT, along with all other fees that comprise the landed cost, at checkout results in a clear, simple, and positive customer experience.
